Lexicon Pharmaceuticals Still Has Much To Prove

FDA approval of a new drug is supposed to be the biotech equivalent of firing off a starting pistol, but that hasn't been the case for Lexicon Pharmaceuticals (LXRX). Due in part to the drug's mechanism of action and external economic factors outside of the company's control, the ramp of its approved drug Xermelo has been frustratingly weak. At the same time, there's still ample uncertainty and outright skepticism regarding the company's drug sotagliflozin ("sota") for diabetes.

Although I continue to believe that Lexicon shares are undervalued by the market, substantially in fact, it's going to take some meaningful positive news to break the company out of these doldrums. Accordingly, investors are really going to need to have some patience for this story to work out.

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Lexicon Pharmaceuticals Still Has Much To Prove